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Agenda Item: 8(a) |
Prepared By: Leslie W. Sanford, Human Resources Manager |
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Business: Consent Agenda Item |
Department: Executive |
Subject:
Title
Renewal of Employee Insurance Plans - Leslie W. Sanford, Human Resources Manager
Body
BACKGROUND:
Attached for the City Council’s approval are the annual renewals for employee health, dental, vision, life, and disability insurance.
Each year the employee benefit committee meets with our Agent of Record, The Gehring Group, Inc., to review our insurance coverage and negotiate agreements for the new fiscal year. Annually our consultants negotiate on behalf of the City and obtain quotes, evaluate the costs versus the coverage, and give the City their recommendations. Staff recommends approval of the consultant’s recommendation of proposed coverage, as we believe it is in the best interest of the City.
EMPLOYEE INSURANCE RENEWAL
The premium rate for health insurance has increased by 5% for the upcoming year. The premium rate for the dental insurance has increased by 8%. The vision insurance carrier and premiums remain the same. The rate for life insurance, short-term and long-term disability remain the same for FY25. The budget is allocated to each department and is sufficient to fund the premium as presented.
FUNDING SOURCE / FISCAL IMPACT:
A health insurance premium increase of 5%, represents an approximately $147,392 annual increase to the City. A dental insurance premium increase of 8%, represents an approximately $1,708 annual increase to the City. The increase was budgeted citywide in the approved FY25 budget.
RECOMMENDATION:
Authorize the City Manager to execute the renewals for employee health, dental, vision, life, and disability insurance.
POTENTIAL MOTION: “I move approval of the employee insurance plans.”